WASHINGTON (Reuters) -The United States on Monday launched its third big crackdown in three years on China’s semiconductor industry, curbing exports to 140 companies, including chip equipment maker Naura Technology Group, among other moves.
Below is a list of the biggest actions being taken, according to the Commerce Department.
CHIP EQUIPMENT
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New controls will be placed on semiconductor manufacturing equipment needed to produce advanced-node integrated circuits, including certain etch, deposition, lithography, ion implantation, annealing, metrology and inspection, and cleaning tools.
This could hit companies like Lam Research, KLA Corp and Applied Materials, as well as non-U.S. companies like Dutch equipment maker ASM International.
SOFTWARE
New controls on software tools for developing or producing advanced-node integrated circuits, including certain software that increases the productivity of advanced machines or allows less-advanced machines to produce advanced chips, which could affect companies like Siemens, which is parent of Mentor Graphics.
MEMORY
Another rule in the package restricts high bandwidth memory used in AI chips that correspond with what is known as “HBM 2” and higher, technology made by South Korea’s Samsung and SK Hynix and U.S.-based Micron Technology.
Industry sources expect only Samsung Electronics to be affected. Samsung generates about 20% of its HBM chip sales from China, a person with knowledge of the matter said.
HBM is critical to both AI training and inference at scale, and is a key component of advanced computing integrated circuits.
ENTITY LIST
The 140 new entrants on the Commerce Department’s Entity List include semiconductor fabrication plants, also known as fabs, semiconductor tool companies, and investment companies “that are acting at the behest of Beijing to further the China’s advanced chip goals which pose a risk to U.S. and allied national security.”
Chinese private equity firm Wise Road Capital, tech firm Wingtech Technology Co and JAC Capital were added.
Companies seeking licenses to ship to firms on the Entity List generally get denied.
FOREIGN DIRECT PRODUCT RULE
The new rule will expand U.S. powers to curb exports of chipmaking equipment by U.S., Japanese, and Dutch manufacturers made in other parts of the world to certain chip plants in China.
Equipment made in Israel, Malaysia, Singapore, South Korea and Taiwan is subject to the rule while Japan and the Netherlands will be exempt.
The expanded foreign direct product rule will apply to 16 companies on the entity list that are seen as the most important to China’s most advanced chipmaking ambitions.
The rule will also lower the amount of U.S. content that determines when certain foreign items are subject to U.S. control. That will allow the U.S. to regulate any item shipped to China from overseas if it contains any U.S. chips.
(Reporting by Chris Sanders and David Shepardson; editing by Jonathan Oatis and Sonali Paul)
